internal marketing impact on external service quality in ... · doi: 10.9790/487x-2007016672 67 |...

DOI: 10.9790/487X-2007016672 www.iosrjournals.org 66 | Page

IOSR Journal of Business and Management (IOSR-JBM)

e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 20, Issue 7. Ver. I (July. 2018), PP 66-72

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Internal Marketing Impact On External Service Quality In

Semeru Pine Forest (Spf) Tourist Atraction

Mochammad Nafia, Bambang Supriadi

b, , Nanny Roedjinandari

c

aDepartment of Accounting, University of Merdeka Malang, 65111, Indoneisa

bDepartment

of Tourism, University of Merdeka Malang, 65111, Indoneisa cDepartment of Tourism,

University of Merdeka Malang, 65111, Indoneisa CorrespondingAuthor: Bambang Supriadi

Abstract : The purpose of this study is to find out the magnitude of the influence of internal marketing to

improve the external service quality (ESQ).This study collect data from144 respondents, which were used for

analysis. The respondents were randomly selected to answer the questionnaire. The test used for the analysis is

independent t-test and simple regression analysis. the result of regression statistic analysis shows that internal

marketing has positive and significant effect on external service quality, meaning that if internal marketing

(leadership, consultative, motivation, work unit, communication, and training) increases by one unit it will

cause external service quality increase by 69.4%, and otherwise, the decline in internal marketing of one unit

will lead to the decrease ofExternalServiceQuality. From the six factors of Internal Marketing (leadership,

consultative, motivation, work standard, communication, and training) that reflect the success of marketing

activities at Semeru Pine Forest (SPF) Tourism Attraction, the one which has the highest frequency is Sharing

Communication. From the success of ExternalServiceQuality (reliability, Responsiveness, Assurance, Empathy,

tangibles) at Semeru Pine Forest (SPF)Tourism Attraction, the one which has the highest frequency in

ExternalServiceQuality is Responsiveness factor.

Keywords: Internal Marketing; External Service Quality ; Semeru Pine Forest (SPF)

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-Date of Submission: 26-06-2018 Date of accepta nce: 10-07-2018

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I. Introduction Internal marketing (IM) is a relatively new approach adopted by the company in order to improve the

quality of products and services in achieving better performance levels. The company sees operational activities

as important, especially an understanding of human resources. [1] A company with a new mindset has emerged

by making employees as their customers which should be provided with quality services to ensure the success of

a business.

At the same time, internal marketing is a service provider to effectively train and motivate employees

associated with customers and all employees who are tasked with providing support services to work as a team

to satisfy customers. The goal is to improve the service of employees who care about customers, thereby

increasing customer satisfaction through the interaction of workers or customers [2] and [5].

Lombart [3] explains that the successful application of internal marketing principles is a prerequisite

for effective external marketing. Marketing activities always culminate in delivering custo mer satisfaction, in

this case tourism services. Tourism services, especially tourist attraction has 2 customers, namely internal

customers, that are the tour employee, and the external customers, that are tourists, who always have to get the

attention and good service. Assessment of internal marketing program is used to know the views of tourism

employees on the treatment from the tour management that they received. This effort helps tour managers to

discover what factorsthat need improvement to further analyze for the satisfaction of tourists.

Internal customers (Tour employees) are individuals in the organization of a tour served by internal

managers that indicate that an organization consists of individual unit chains that linked together then the related

unit is used to satisfy the external customer, i.e. tourists. Along with this customers‟ awareness, both external

and internal,towards quality is important.In these conditions, tourorganizations are required to improve all

aspects of quality.

Organizations in tourism business activities are in desperate need of internal marketing activities to

achieve marketing targets, inhibiting the efforts of internal marketing services that provide many benefits in

achieving marketing success because it is more integrative and is an ongoing process [4]. The benefits of

internal marketing in tourism service business include: Effective means to develop the company's competitive

advantages because internal marketing provides an atmosphere of openness so as to enable the excavation of

information, especially regarding the potential of human resources. Reduce any conflicts due to the fact that

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Internal Marketing Impact On External Service Quality In Semeru Pine Forest (SPF) Tourist

every program and participation is emphasized in every decision. Facilitate innovation, because internal

marketing is an ongoing process and motivates the tour managers to think creatively.

Otherwise tourism services often pay more attention to external marketing and interactive marketing,

but internal marketing should also be given equal attention to increase external customer satisfaction. Internal

marketing activities so far have not had much positive impact on ExternalServiceQuality (ESQ) on tourism

service employees in serving tourists in tourism attraction. Until now Service quality or SERVQUAL has not

been much understood by the operator of tourism destinations, so the value of tourists‟ satisfaction belonging to

mediocre have not reached the value of maximum satisfaction, especially concerning the quality of tangibles

services, namely the ability of a company in showing its existence to external parties, which includes the

physical facilities of instrument and equipment (technology) and the appearance of its employees. Reliability,

that is the ability of the company to provide services in accordance with the promise accurately and can be

trusted. Responsivenessm, that is a willingness to help and provide prompt (responsive) and appropriate service

to the customer. Assurance (/ certainty), that is knowledge, courtesy, and the ability of company employees to

cultivate the trust of customers to the company. Empathy, which is to give sincere and attention individually.

Most tourism service business is an intangible activity and that requires interaction between customers

and service providers.It is not alone, the attention of service providers should focus on meeting the needs and

desires of tourists, especially the quality of service so that tourists are satisfied and have a high loyalty to the

service providers.To support it, it is necessary to have internal marketing because internal marketing is a

marketing by service providers to effectively train and motivate the tour managers related to customers and all

employees in charge of providing support services to work as a team to satisfy customers [2] [4], [5].

Internal marketing is expected to trigger and spur tour managers to think creatively in improving the

quality of service externally to tourists and have one in common view to be more concerned to customers. High

quality of service with more care to customers is expected to increase customers‟ satisfaction. Customers‟

satisfaction is the response or level of customer feeling after receiving and enjoy the service as a whole [2], [6],

[8], [9] and [10]. High customers‟ satisfaction is ultimately expected to generate and increase customers‟ loyalty

to service providers, thus high quality tourism services with more care to tourists is expected to be able to

increase the satisfaction of tourists. Given the importance of internal marketing for service providers including

tourism services, the purpose of this study is to find out the magnitude of the effect of internal marketing to

improve external service quality (ESQ).

II. Literature Review Internal marketing is marketing to internal customers within the company in order to provide

motivation to the employee to work and to serve external customers which resulting in the value of external

customer satisfaction. Some programs to implement internal marketing concepts are: (1) Training; (2)

Management Support and Internal Interactive Communication; (3) Personnel administration tools and human

resources management; (4) Developing a service culture, [4] and [5]. The key elements of internal marketing

activities are: communication, training, education, and information.

Internal marketing activities can have a positive impact on external service quality (ESQ) on tourism

service employees in serving tourists in a tourism attraction. Service quality or SERVQUAL, [7] is built on the

comparison of two main factors: customer perceptions on the actual service they receive / perceived service with

the service that the customer wxpwct to get / expected service. If the actual service is more than the expected,

then the service can be said to be very satisfactory. Ifthe actual service equals the expectations, then the service

is called satisfactory. But, if the actual service is lower than the expected, then the service can be said to be

unsatisfactory. The dimension of service quality of tourism can refer to the service quality dimension in general,

[7] the service quality consists of five dimensions: Tangibles, i.e. the ability of a company to show its existence

to external parties, including physical facilities (buildings etc.),instrument, and equipment (technology) and the

appearance of employees. Reliability, that is the ability of the company to provide services in accordance with

the promise accurately and can be trusted. Responsiveness, that is a willingness to help and provide prompt

(responsive) and appropriate service to the customer. Assurance (/ certainty), that is knowledge, courtesy, and

the ability of the company‟s employees to cultivate the trust of customers to the company. Empathy, which is to

give sincere and attention individually.

III. Material & Methodology The data was obtained from questionnaire adopting Likert Scale from 1 to 5 where 1 stands for

strongly agree and 5 stands for strongly disagree. The population for this study is consists of customers in

green hotel, the respondents for this study are 144 were used for this analysis and the respondents have been

pick up randomly to make the questionnaire easier to answer. This study aims to test hypothesis that internal

marketing (IM) has positive and significant impact on hotel external service quality (ESQ)



The data accumulated from the various authentic sources (primary) was subjected to various statistical

tools for verification and interpretations, such as, Descriptive Statistics (Mean, Standard Deviation and

Percentile) were used to have a understanding on the basis of the respondents group. The data once collected

was analysed by using the Statistic Program Social Sciences (SPSS). The tests used for analysis were

independent t-test and simple regression analysis.

IV. Result and Discussion Malang Regency is located on 112

o 17'to 112

o 57' East Longitude and 7

o 44'to 8

o 26' South Latitude.

The part of this Regency in the north is borderingwithPasuruan Regency and MojokertoRegency, in the east

bordering withProbolinggo Regency and LumajangRegency, in the west withBlitarRegency and Kediri

Regency, while in the south with Hindia Ocean.

Malang Regency is the second largest regency in Java Island after BanyuwangiRegency. Most of the area is mountainous. The west and northwest are mountainous, with the peak of Mount Arjuno (3.339m) and

Mount Kawi (2.651m). In this mountain range there is the spring of Brantas River, the longest river in East Java.

The eastern part is the Bromo-Tengger-Semeru Mountain complex, with its peak of Mount Bromo (2,392 m)

and Mount Semeru (3.676m). Mount Semeru is the highest mountain in Java Island. Malang city itself is in the

basin between the two areas of the mountains.

Tourism potential in Malang Regency is known as the main tourist destination of East Java. Some

interesting ecotourism places in Malang Regency are Mountain tourism, that covers; Mount Bromo through the

Tumpang Village (sub-districtTumpang), Gubug Klakah Village –Sub-District Poncokusumo; Mount Semeru

through Ngadas village,Sub-district Poncokusumo.

The growth of Local Tourists (Wisnus) and International Tourists (Wisman) in Malang Regency from

2009 until 2014 experienced fluctuations.For Wisnus and Wisman in 2010 until 2011 was increasing, but in

2012 decreased, then decreased again in 2012 and increased in 2013, and in 2014 it rose again.

The geographical area of Poncowismojatu in Malang Regency is located in the eastern zone of Malang

Regency with 5 Sub-districts including Pakis, Jabung, Tumpang, Poncokusumo and Wajakand Semeru Pine

Forest (SPF) Tourism Attraction.

The existence of Semeru Pine Forest (SPF) Tourism Attraction as one of the new tourist destinations in

Wajak District, Malang Regency has attracted tourists.This place has a cool and natural air. Semeru Pine Forest

(SPF)is located at the foot of Mount Semeru, precisely in ArjosariOrchard, Sumberputih Village, Sub-District

Wajak, Malang Regency. The distance is about 40 km from the center of Malang, it takes one -hour drive from

Malang to HPS.

The route to the location of Semeru Pine Forest (SPF)is quite easy, just need to go to Sub-District

Bululawang, Malang Regency. In the T-junction red lights in Krebet, turn east toward Jalan Raya Bakalan,

Sudimoro. Then follow the main road until it finds the intersection of Jalan Raya Kedok, straight towards

TibanMosque. After passing through the area of Tiban Mosque, meets Sumberputih Village, then get to the

entrance ofSemeru Pine Forest (SPF) Tourism Attraction.

This tourism spot is fairly new, though quite a lot of tourists are curious about this new tourist

destination. Not only tourists who come from within the city or district of Malang, but also from outside the area

of Malang. This is because Semeru Pine Forest attracts tourists by providing several spots for photography. One

of the spot for photographs which is so coveted with visitors is the presence of umbrellas that hung among the

pine trees. In addition, visitors can also bring a hammock to be installed on a pine tree trunk. In addition to

relaxing, the hammock can be a cool photo spot. In addition, along the area to the photo spot there are several

stalls.

So far there has been no requirements of admission tickets, so it's still free. It's only for visitors who

bring vehicle who will be charged for vehicle parking rates. The managers of thistourism attractions that located

in one hectare of pine forest area promises the completeness of the facility. Not only the existing facilities in the

sights, but also access roads that will be repaired and facilitated by sign boards.

4.1 Respondents Profile

In overall demographics, over a period of 8 weeks in May 2017 to June 2017 the number of questionnaires that can be collected from two sample types representing InternalMarketing is the internal

organization of ecotourism, i.e.a tourism conscious group having an interest in destination management

organizations (DMOs), and for the external marketing samples (Exsternal service quality) are tourists who are

visiting Semeru Pine Forest in Malang Regency. Tourists who visited Semeru Pine Forest (SPF) in Malang

Regency were as many as 144 respondents who answered the questionnaire completely and have been

considered for analysis. Approximately 56% of the sample (80 people) are male and 44% of the sample (64%)

are women. In the type of occupation, 31% (45 people) of the tourists are working as civil servants, and 31%

(99) tourists are working for private employers. Based on the living place, 59% (85) tourists come from Malang



around the city (Malang City / Regency and Batu City) and 41% (59 people) come from outside Malang Raya

area.

4.2 Description of Internal Marketing (IM)

There are six indicators that can reflect the success of internal marketing activities at Semeru Pine Forest (SPF) Tourism Attraction. Internal Marketing (IM) has a quite good average success rate (3.77) with the

standard deviation of 0.39.These six indicators can be detailed as follows: The leadership pattern implemented

in Semeru Pine Forest (SPF) Tourism Attraction in average is good (3.79), the consultative model that has been

done in carrying out activities in Semeru Pine Forest (SPF) Tourism Attraction in average has been good (3.86),

the motivation of the SPF managers in tourism activities in the average is good (3.75), the working standard

implemented in Semeru Pine Forest (SPF) Tourism Attractionin average is good enough (3.56), the form of

communication implemented in Semeru Pine Forest (SPF) Tourism Attractionaveraged as much as (3.91) which

become the highest position than other indicators, and the training held at Semeru Pine Forest (SPF) Tourism

Attraction in average is good (3.75). More details can be seen in the following table 1.

Table 1. Internal Marketing

Indicators Mean Std. Deviation Leadership 3.79 0.53 Consultative 3.86 0.63 Motivation 3.75 0.60 Working Standard 3.56 0.51 Sharing Communication 3.91 0.57 Training 3.75 0.54 Internal Marketing 3.77 0.39

Responses of respondents on Leadership indicators (n = 144) of each statement item are as follows: the

Management of Semeru Pine Forest (SPF) Tourism Attraction implements a system of democratic leadership

and participation, there are 1% (7) disagree, 24.3% (35) quite agree, 69.4% (100) agrees, and 5.6% (8) strongly

agree, on average 3.79% has meaning that respondents agree that the management of Semeru Pine Forest (SPF)

Tourism Attraction implements a system of democratic leadership and participation.

Respondent's response on Consultative indicator (n = 144) from each statement item are as follows: the

Management of Semeru Pine Forest (SPF) Tourism Attraction always conducts focus group discussion (FGD)

and always consult if there is problems, 1% (7) disagree, 23.6 (34) agrees, and 11.8% (17) strongly agree, an

average of 3.79% has the meaning that respondents agree that the Management of Semeru Pine Forest (SPF)

Tourism Attraction always conducts focus group discussion (FGD) and always consult if there is problems.

Response of respondents to motivation indicator (n = 144) from each statement item are as follows: Management ofSemeru Pine Forest (SPF) Tourism Attraction provides work incentive to improve morale in

working for staff, there are 34.0% (49) quite agree, 56.9% (82) agree, and 9.0% strongly agree, on average

3.75% which means that respondents agree that the Management of Semeru Pine Forest (SPF) Tourism

Attraction provides work incentive to improve the spirit in working for staff.

Responses of respondents to the Standard Working Indicators (n = 144) of each statement item are as

follows: the Management of Semeru Pine Forest (SPF) Tourism Attraction has benchmarks in the defined work

or target work, there are 43% (63) quite agree, 55.6% (80) agree, and 7% (1) strongly agree, on average 3.56%

which means that respondents agree that the Management of Semeru Pine Forest (SPF) Tourism Attraction has

benchmarks in the work or job target set by the tourism organization.

Response of respondents on Sharing Communication indicator (n = 144) from each statement item are

as follows: the Management ofSemeru Pine Forest (SPF) Tourism Attraction has connectivity with other

tourism organizations and always communicate with tourism stakeholders, there are 20.8% (30) quite agree,

66.7% (96) agrees, and 12.5% (18) strongly agree, on average of 3.91% which means that respondents agree

that the Management of Semeru Pine Forest (SPF) Tourism Attraction has connectivity with other tourism

organizations and always intertwined communications with tourism stakeholders.

Responses of respondents to the training indicator (n = 144) of each statement item are as follows: the

Management ofSemeru Pine Forest (SPF) Tourism Attraction always be givendirectives and activities in the

form of tourism education and training, there are 30.6% (44) quite agree, 63.9% (92) agree, and 5.6% (8)

strongly agree, on average 3.75% which means that respondents agree that the Management of Semeru Pine

Forest (SPF) Tourism Attraction always be givendirectives and activities in the form of tourism education and

training.

Internal marketing indicators (leadership, consultative, motivation, work standards, communication,

and training) in detail can be seen in the table 2 below:



Table 2. Internal Marketing Indicators Indicators Item Leadership The Management of Semeru Pine Forest (SPF) Tourism Attraction implements a democratic

and participative leadership system Consultative The Management of Semeru Pine Forest (SPF) Tourism Attraction always conducts Focus

Group Discussion (FGD) and always consult the arisen problem Motivation The Management of Semeru Pine Forest (SPF) Tourism Attraction provides work incentive

to improve staff‟s spirit in working Working Standard The Management of Semeru Pine Forest (SPF) Tourism Attraction has benchmarks in the

defined work or target work Sharing

Communication The Management of Semeru Pine Forest (SPF) Tourism Attraction has connectivity with other tourism organization, and keep an intertwined communication with the stakeholders of tourism

Training The Management of Semeru Pine Forest (SPF) Tourism Attraction always be given directives and activities in form of tourism education and training

4.3 Description ofExternal Service Quality (ESQ) Five indicators that can reflect the success of External Service Quality at Semeru Pine Forest (SPF)

Tourism Attraction has a good average success rate (3.96) with standard deviation 0.37.The five indicators can

be specified as follows: Reliability that has been implemented in Semeru Pine Forest (SPF) Tourism Attraction

with average of (3.77) that has been good, Responsiveness that has been done in running the activities in

SPFwith a good average (3.97) and has become the highest position of other indicators, Assurance owned by

managers in the tourism sector in SPF was good (3.88), the empathy held at the Semeru Pine Forest (SPF)

Tourism Attractionhas a quite good average as much as (3.95), the Tangibles held at Semeru Pine Forest (SPF)

Tourism Attraction averaged as much as (3.96) and become the highest position of other indicators. More details

can be seen in the following table 3.

Table 3. External Service Quality

Indicators Mean Std. Deviation 1. Reliability 3.77 0.52 2. Responsiveness 3.97 0.50 3. Assurance 3.88 0.54 4. Empathy 3.95 0.45 5. Tangibles 3.86 0.46 External Service Quality 3.96 0.37

Based on the result of regression statistics analysis obtained the model as follows: Y = 1.308 +

0.694X1. The calculation result, Regression Coefficients X1 is 0.694 with the meaning that if internal marketing

increased by one unit, it will cause External Service Quality increased by 69.4% in Semeru Pine Forest (SPF)

Tourism Attraction, and otherwise, any decrease in internal marketing by one unit will cause decrease in

External Service Quality equal to 69.4%. Internal marketing variable has t test (12.66), at a level of significant

level 99%, means that there is influence of internal marketing variable to External service quality variable

inSemeru Pine Forest (SPF) Tourism Attraction. Regression results obtained by Correlations Coefficients (R =

0.728), means that the relationship between internal marketing and External service quality is strong because the

value of r is close to 1.

The estimation of the regression equation tested partially by using t test is known that internal

marketing variables positively and significantly influence to tourist satisfaction. The estimation of regression

analysis shows that internal marketing variables have positive and significant effect on External service quality

(B = 0,728) with significance p = .000, indicating that the higher internal marketing facility, the higher the level

of external service quality.

The test result shows X1 value is 12.662 and t-table is 2,476 (n = 144). Thus, the value of X1 (12.66)>

t-table (2.476).it can be concluded that at significant level of 99%, there is influence between internal marketing

to external service quality in Semeru Pine Forest (SPF) Tourism Attraction.

The results of the above-mentioned analysis show that internal marketing variables perceived through

six indicators have a positive and significant influence, such as the opinions of some other researchers related to

internal marketing, Hers [11] stated that the quality of external customer satisfaction can be achieved through

internal customer satisfaction. Hers [12] explained in his research that internal marketing has a positive

influence on company performance, as well as Eldeen and El-said [13] concluded that the organization has

implemented internal marketing well and impacted the company.

Elsamen and Alshurideh [1] research using internal marketing dimension and internal quality service

dimension concluded that there is a correlation between internal marketing dimension with internal quality

service dimension. This is also supported by research result from Wang et al. [15] stating that internal marketing

involving the effectiveness of training activities on employees affects customer satisfaction.



Therefore, this study aims to investigate the effective implications of InternalMarketing and internal

quality towards internal customer‟s satisfaction in the tourism industry in Malang Regency.Based on the above

explanation, then the problem in this study is as follows the formulation of the research questions.

These results are supported by the general opinion of previous researchers who said that internal

marketing can improve the quality of service employees who care for customers, so that ultimately can improve

customer‟s satisfaction. [2], [5] and [4]. Sharing Communication in the implementation of internal marketing

has a major influence in improving the quality of service because the management of Semeru Pine Forest (SPF)

Tourism Attraction has connectivity with other tourism organizations and always communicate with the tourism

stakeholders in the form of ASIDEWI (Association of village tourism) activities and the occurrence of good

communication between tourism managers with local governments in the district of Malang especially by the

Department of Tourism and Culture.

The success of External Service Quality at Semeru Pine Forest (SPF) Tourism Attraction which has the

highest average success rate of the factors is the Responsiveness that has been done in carrying out activities in

Semeru Pine Forest (SPF) Tourism Attraction, the real form of Responsiveness is the management has the

ability to provide services with fast and precise response in running the management of tourism destinations,

especially in response to the needs, wishes and expectations of tourists.

V. Conclusion Therefore, this study aims to investigate the effective implications of InternalMarketing and internal

quality towards internal customer satisfaction in the tourism industry in Malang regency based on the

formulation of the problem.

These results are supported by the general opinion of previous research that internal marketing can

improve the quality of service employees who care for customers, so that ultimately can improve customer

satisfaction. [2], [5] and [4]. Sharing Communication in the implementation of internal marketing has a major

influence in improving the quality of service because the management of Semeru Pine Forest (SPF) Tourism

Attraction has connectivity with other tourism organizations and always communicate with the tourism

stakeholders in the form of ASIDEWI (Association of village tourism) activities and the occurrence of good

communication between tourism managers with local governments in the district of Malang especially by the

Department of Tourism and Culture.

The success of External Service Quality at Semeru Pine Forest (SPF) Tourism Attraction which has the

highest average success rate of the factors is the Responsiveness that has been done in carrying out activities in

Semeru Pine Forest (SPF) Tourism Attraction, the real form of Responsiveness is the management has the

ability to provide services with fast and precise response in running the management of tourism destinations,

especially in response to the needs, wishes and expectations of tourists.

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Mochammad Nafi "Internal Marketing Impact On External Service Quality In Semeru Pine

Forest (Spf) Tourist Atraction "IOSR Journal of Business and Management (IOSR-JBM) 20.7

(2018): 66-72

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